Thank you for the clarification, it really helps a lot.
So to be sure I undestand, you have all 10 varieties in every combination of location (2) and year (2), an environment. Each variety is tested in triplicate and arranged as 3 coimplete blocks within each environment. So you have 10 x 2 x 2 x 3 = 120 observations arranged in 12 blocks?
It seems to me that the model should treat block as a random effect without nesting. Instead of indicating block = 1, 2, or 3, indicate it as 1 through 12 in the data table. Select the block effect in the model, click the red triangle next to Attributes, and select Random Effect.
I don't understand why you would treat the block as a fixed effect or need to nest it based on your description.